The Binary Options Trading

The binary options trading is a method of earning money, which became available for everyone with a help of  information technologies, particularly the Internet.

Among other types of income in the global Internet, the financial trading can be allocated, because it is a trading on the stock exchange. This kind of financial trading favorably differs from trading of binary options. This approach to stock trading has become the most popular due to high profitability of the process, accessibility and simplicity.

The Binary Options Trading

 

What are binary options and how do you make money on it?

First of all, you need to understand that a binary option is a type of exchange contract that is used to make a profit on the price movements of assets (currencies, stocks, products) in global financial markets.
Income on binary options depends not only on the price of a financial asset, it also depends on a correct forecast, made by the market’s participant. If you want that your contract made some profit, you will need to determine the direction of movement of the price of the selected asset until the completion of the transaction. That is, you choose the time interval after which the price of the selected asset will be higher or lower than the current one. If you make a correct forecast, you earn about 85% (the rate depends on the broker) from the investments, otherwise you lose all the investment in the option. This tool is very convenient for hedging the risks of using other types of trade in the financial markets, for example, the Forex market.

 

Basic terms in trading of binary options

Asset – currency pairs, indices, products, shares or other securities, on which it is possible to conclude contracts for purchase or sell (PUT or CALL).

PUT option– the deal on purchase of the option to decrease the value of the selected asset, which is issued, if you expect the price reduction.

CALL option – deal for the purchase of the option to increase the value of the selected asset, which is issued, if you expect the growth of the price.

One touch or OneTouch – deal for the purchase of the option, where the price reaches a certain level (One Touch) or not achieve it (No Touch) before the expiry.

Expiration – the time of the expiration date of the option, where the result is fixed on the contract.

In/Out-options – Deal for the purchase of the option, on which the corridor is predicted, the price will move until the expiration (In option) in this corridor or output the price within the corridor (Out option).

Timeframe –  is the time interval on the price chart.

Basic terms in trading of binary options

 

Trading of binary options like an affordable way of earning through the Internet

Many experts say that today’s binary options is the most profitable way of earning. They explain this easily, if you want to receive a large and predetermined profit before you begin to trade, you need to define correctly the estimated direction of movement of an asset.

The uniqueness of this type of income is that you can get your profit fast enough. There is no need of long waiting as in anticipation of the charging of interest on Bank deposit. You can choose the time, where after it will check the forecast on the price movement of the asset.

First of all, you need to understand that the binary options are not something magical that could make millions without risk in a short time. Thus, it is possible to earn a large amount, and quite quickly, but it is fairly complicated and has certain risks. To get earnings, without losses, it is necessary to learn about how to predict market movements, correctly calculate the direction of change of the value of the asset.

Believe us, it is not as easy as it can seem.

 

What is the difference between trading of binary options and trading in the market Forex

The binary options and the Forex trading surely have their difference, and a very significant one ! It consists mainly of the fact that in order to get a profit on the Forex market you have to ensure that quotes went in the direction of your prediction on a significant number of points, then you have to close the deal! But, with a binary options trading, everything is different – the number of points  is not important for you. Just one item, passed by the price in the direction of forecast, will be enough to receive full profit ! While the time of completion of the option (expiration) is known in advance, whereas in the Forex market, you set the time, so there is a risk of an unplanned significant loss, but it is excluded on binary options: you can’t lose more bets.

 

Why do you need a broker?

Before you start trading activities, you must open your trading account. You need a binary options broker for this.

Why do you need a broker?
A broker is a legal entity – a company, that provides you with an access to financial market, where you are as a trader, carry all the operations alone . It would be better to call the company, that provides brokerage services. This is quite a big difference. The fact that brokers can be divided into two categories, brokers executing transactions on behalf of the client and at the expense of the client, and second, the brokers, that operate on their own, but at the expense of clients. The second category is often some large financial corporations, in which clients are investors and receive a percentage of the total profits of the company. But the first category is the companies whose services we use in trading of binary options.

 

Platform for binary options trading

The platform is a trading terminal, through which you can trade binary options anywhere and at any time.

The right choice for a trading platform opens up all the features and presets for comfortable trading. A good platform is characterized by the following:

  • Quotes of the asset are presented in a large window, which helps to analyze the quotes;
  • You can choose charts of quotes between linear and candle;
  • It is desirable that the platform had been integrated with technical indicators through which you can create your own trading strategies;
  • Profitability of options should be not lower than 85%;
  • The price chart can be played back in history to review the strategies, with a zoom out, zoom in, etc.

 

Trade on binary options on Android and Apple

Traders have the opportunity to engage in optional trade without being tied to the computer. There have been mobile versions of the trading terminal in the market for a long time where you can carry out the trading of binary options anywhere via the Internet connection. The main difference between mobile trading from regular trading platform is that trading platform tool will always be in your pocket!

Trade on binary options on Android and Apple

In general, the mobile platform is just a comfortable way of having of the standard platform of the broker in a shell of your phone.

 

Money management in trading of binary options

The money management involves the optimal and accurate strategic financial management, providing the most possible profit. It is the science, teaching effective management of the Deposit for profitable trading in the long term.

Successful trades are ensured by the execution of one main recommendation, it is not necessary to conclude transactions, which can exceed five percent of your Deposit.

More about Money Management

 

How can you trade on binary options?

Getting started trading binary options, you need to analyze and study the theory.
For a reasonable trade, at least, you shouldn’t recede from a simple set of rules:

1) Find full information about binary options. Don’t think that these earnings are easy to reach for some lazy people. You should learn the theory and then you can try everything on demo practice.

2) Don’t throw at trading all your money. This is unwise. Start with “cents” and practicing on a demo account. Play it safe and take your time.

3) Choose your broker carefully, you should surely read reviews first, find out all the trading conditions, find out what kind of services you can get at the selected company.

4) Never give your money to brokers to sell them on their own. The brokers are not even allowed to advise anything to contract traders, neither access to personal deals with customer accounts. If you get a doubtful proposal, take your deposits and walk away, not turning back.

5) When you have saved up a little money on your account, try to withdraw it. You will calm down and it will give you the opportunity to check the honesty of the company.

6) Always remember: the deposit can be lost. Get used to this fact. If you can’t get used to it, put your money in your  bank account. It will be much safer.

 

What are binary options trading. Is it fraud or the truth?

Your activity in the financial markets can’t allow you to be enriched on instant. To earn money, you should pass long and hard work.

Based on the fact that binary options in the stock market are applied as equal with other types of trade, they fall under the legal control of the regulators of different countries. Among them the most famous regulatory company is CySEC. In addition, there are companies, such as FCA, NFA, FSA, ESMA, CFTC, ASIC, SIBA.

The reliability of the binary options is also confirmed by the large and relevant governmental financial organizations of the countries with the most developed economies.

As far as it is known, in the CIS the binary options market is not regulated. The legislation doesn’t define the organs and mechanism of regulation of binary options by the government of Russia and the former countries of the Soviet Union at the moment. That is why, in the options market of the CIS is currently working nonstate organ that performs regulatory functions – FMRRC (Center for the regulation of financial markets).

 

How can you start trading on binary options?

1) You should explore the types of options

2) You should estimate the current situation on the market relatively to your chosen asset

3) Find out methods for determining the contract price

4) Find out all the advantages with binary options compared to traditional and also you can read about the benefits here

5) You should make accurate calculation of the operating expenses.

 

Is it possible to make money from scratch?

Yes, it is ! If you want to do this, you need “to keep your finger on the pulse” and to follow the news about the shares held by various brokers. Very often traders are provided with a special promotion that allows you to try at binary options trading on a real account and with real money. So, you are given the chance to try first without actual investing.

 

How much can you earn with binary options?

The value of possible earnings on binary options – it goes without question from among the rhetorical, and, although it is not a completely accurate answer, we will try to give you some advice that can help you earn quite a lot!

Honestly, the question is not quite correct. You can earn as much as you want! Probably, you need to ask the question – what do you need to do to earn a lot?

 

How do you trade on binary options?

There are a few success stories on binary options, when you are studying this, you will be able to understand more about trade on binary options:

My success story – how can you earn with binary options
Case for earnings on Binomo